BIRMINGHAM, Alabama -- Drummond Co. exchanged "confidential information" with rival coal giant Peabody Energy Corp., according to a lawsuit recently dismissed in U.S. District Court in New York.

That's where the Birmingham coal mining company this year sued St. Louis-based Peabody, saying the rival stole a top ranking executive.

The case was dismissed last week with prejudice, meaning Drummond cannot file again with the same allegations, Peabody spokeswoman Beth Sutton said.

"The allegations
were clearly without merit," Sutton said. "The case was dismissed with prejudice, there was no
settlement agreement, and no payment made by Peabody."

The executive in question, Marc Hathorn, was Drummond's operations chief in Colombia, South America, where the company operates vast surface mines. Drummond this year began seeking a buyer or joint venture partner for the Colombia assets, which include a rail line and port.

"Drummond provided Peabody with confidential information and permitted teams of Peabody personnel to visit its Colombian mining operations that Hathorn was responsible for, where they had opportunities to review materials regarding the mining operations and to meet with Hathorn and learn about his skills and abilities," says the suit.

Peabody, the largest coal producer in the United States, began employing Hathorn in June, the suit says, as head of Midwest operations. The companies, the suit said, agreed in writing to not hire each others executives as a result of information gleaned from the evaluation of Drummond's Colombian operation.